rental income tax, USA News: Landlords face a four per cent tax rise on rental income from 2027, Chancellor John Healey has announced. Tax rates on properties and savings income will increase by a further two per cent from April – in the second successive Budget tax raid after the rise announced last year by former Chancellor Rachel Reeves.
Healey announced the increase during his “breathing space” Budget, where he confirmed a £100 energy payment for all households in council tax bands A to D. He reiterated Labour’s manifesto promise “not to raise tax on working people”
Speaking in the House of Commons, he said: “I am increasing the rates of tax on income from property and savings by a further two percentage points from April 2027, with no change to tax on income from dividends and tax on income from employment.”
The new rise means that, from April 2027, the basic rate of property income tax will be 24 per cent, the higher rate 44 per cent, and the additional rate 49 per cent.
Conservative Party leader Kemi Badenoch said in response to Reeves’s Budget that the rise on rental income will cause renters to suffer. “Hiking tax on landlords will only push up rents,” she said. “It will push landlords out of the market. The people who will suffer are the tenants.”
Nimesh Shah, chief executive of Blick Rothenberg, told The i Paper : “It’s a bit [of] a ‘final nail’ [in the coffin] for buy-to-let landlords – with mortgage interest relief restrictions, some landlords are facing effective rates of income tax of over 50 per cent.”
